Chinese electric vehicle giant BYD is on track to surpass Tesla as the global leader in EV sales for 2025, marking a historic shift in the industry.

BYD announced on Thursday that its battery-powered car deliveries rose nearly 28% to over 2.25 million units.

Analysts estimate Tesla’s full-year figures, due Friday, at around 1.65 million vehicles—the first time Elon Musk’s company will be outpaced annually.

BYD’s growth, though its slowest in five years amid fierce domestic competition, reflects aggressive expansion abroad:

• Latin America, Southeast Asia, and Europe have become key markets.
• In the UK, sales surged 880% year-to-September, making it BYD’s largest non-China market.

The Shenzhen-based firm’s pricing advantage continues to undercut rivals, even as tariffs rise in major markets. Its diverse lineup—including plug-in hybrids—has bolstered resilience.

Tesla, meanwhile, faced headwinds in 2025:

• Mixed reception to new models.
• Backlash over Musk’s political roles, including involvement with the Trump administration.
• Intensifying rivalry from Chinese automakers.
• October saw lower-priced U.S. Model 3/Y launches aimed at boosting demand.

Musk’s challenges extend beyond cars, as he pursues a potential $1 trillion pay package tied to ambitious targets like selling one million humanoid robots by 2035 and advancing Robotaxis/Optimus.

The shift underscores China’s growing dominance in the EV sector, with firms like Geely and MG also pressuring Western brands.